Medicinal cannabis company, MGC Pharmaceuticals, has inked a new supply agreement that will generate immediate revenue streams from THC Global Group Limited who will now white label MGC’s pharmaceutical-grade phytocannabinoid or “CBD” medicinal products for sale into the Australian and New Zealand markets.
Canndeo focuses on CBD formulations, which are not psychoactive and are used internationally by patients for a range of indications and symptoms including epilepsy, anxiety disorders, pain and inflammation.
The white labelled cannabis-based pharmaceutical products will be sold under THC’s “Canndeo” brand in a liquid form and will contain a variety of CBD and tetrahydrocannabinol quantities that are produced in MGC’s Slovenian facility.
Importantly, the new agreement will not compete with any of MCG’s existing cannabinoid products.
The company has received its first purchase order for about €25,000 and the agreement provides for a minimum order quantity of €50,000.
Co-founder and Managing Director of MGC Pharma, Roby Zomer, said: “The Supply Agreement with THC Global for the white label production and supply of pharma grade Canndeo branded products demonstrates MGC Pharma’s reputation, high quality and cost competitiveness in the ever-growing use of phytocannabinoids for medicinal purposes.
“This new, and immediate, revenue stream will contribute to increasing revenues from Australia and New Zealand going into 2020, and we expect that further discussions between MGC Pharma and THC Global on mutual exports of product to respective international markets will be beneficial to the Company going forward, particularly as we develop our ~15,000m2 multi-purpose GMP certified pharma production and research facility in Malta.”
According to the British Journal of Clinical Pharmacology, the most common uses of CBD are in the treatment of anxiety, schizophrenia, nausea, vomiting, inflammation and epilepsy.
In 2018, MGC received a manufacturing license for its cutting edge manufacturing facility in Slovenia to commence producing cannabis-based medicinal products.
CBD is legal in Australia under the Special Access [prescriptive] Scheme and MGC has permission from Australia’s Therapeutic Goods Administration to import its medicinal cannabis-based products for supply in either a clinical trial or under the Special Access Scheme.
The Special Access Scheme allows health practitioners to access therapeutic goods that are not on the Australian Register of Therapeutic Goods for their patients under exceptional clinical circumstances.
NB: This article is for general financial markets news purposes only and is not to be taken as an endorsement of, or advertisement for any individual product, medicine or drug.
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